Sales

Sales - US

North America - Gift Card Growth - 2028

Digital Gift Cards are expected to grow to 60% of all Gift Card Spending.
Market Potential: The US digital gift card market is forecasted to grow at 17.1% annually.**

North America

Closed Loop = $308B
eGift = $184.8B

includes US, Canada, Caribbean, Mexico

United States

Closed Loop = $267.3B
eGift = $160.38B

Canada

Closed Loop = $26B
eGift = $15.6B

By Retail Segment

Purchasers by Generational Segment

Shell $240M

*Credence Research and Napco Research 2023
**The Entrepreneurship Reporter

Shift Towards Digital Gift Cards: Industry Trends and Implications

Consumer Preference: Digital gift cards are becoming increasingly popular due to their convenience, speed, and security. A survey by Credence Research found that 75% of respondents preferred digital gift cards over physical ones for their ease of use and instant delivery. Their integration with e-commerce platforms and mobile wallets has further fueled their growth, with digital wallets accounting for 45% of all online transactions in 2023.
Emerging Digital Innovations:

Secure eGifts: BHN’s Visa® and Mastercard® eGift offerings enhance security and convenience.
Cross-Category Partnerships: Hallmark incorporates digital gift cards through InComm Payments.
Revenue Growth Opportunities: Reports highlight untapped potential in digital gift card adoption.
Fraud Mitigation: Digital cards act as key tools against retail scammers.

Fraud Mitigation and Rising Costs: Gift card fraud remains a significant issue, with $228 million in losses reported in the past year—a $100 million increase since 2020 (FTC). Fraud tactics, such as "gift card draining," exploit vulnerabilities in physical cards. Digital gift cards, however, offer a robust solution through encryption, multi-factor authentication, and real-time monitoring. Retailers also benefit from reduced overhead costs, such as storage and shipping, while providing consumers with instant, secure delivery options.

Direct Sales Alignment and Marketing

Sales Team Realignment: Reorganized 2025 sales team structure to focus on geographical relevance to Shell locations for improved efficiency and impact.
Enhanced Direct Marketing: Implemented targeted email campaigns and cadence to engage direct customers.
Corporate Customer Campaigns:

Re-introduce "Free Shipping" campaigns throughout the year to encourage corporate customers and boost engagement.
Shell re-activation: Reach outs to all Shell clients who had stepped away or impacted during the California Fraud to reintroduce the Shell product and its enhanced security.

Promotional and Partner Collaboration

Continue Promotional Calendar: Scrip promotional activities to drive incremental sales across categories.
Partner Collaboration: Established bi-weekly meetings with InComm and BHN to ensure consistent progress and communication.
Expanded Distribution: Secured additional InComm and BHN distribution locations for 2025, supported by new card production.

B2B Digital Initiatives

Actively developing an onboarding pipeline for Shell API Integrations to improve sales velocity for 2026.
Successful launch of Shell Digital within BHN and Catalog for 2025.
Continue to identify new verticals to target for 2025 and 2026 within Online Loyalty & Rewards Platforms, Healthcare, and Government Assistance.

Shell US 2025 Sales Update - YTD May

	FY24 Total	FY25 Forecast	FY25 YTD (May)	FY24 YTD (May)	Variance
B2B Corporate	$27,700,174	$31,906,332	$7,609,477	$12,927,661	($5,318,184)
B2B Reseller	$9,899,176	$13,600,000	$4,021,606	$4,573,391	($551,785)
B2B Scrip	$8,886,257	$10,965,158	$3,030,323	$3,644,120	($613,797)
B2B AAP	$84,431,914	$94,128,560	$35,139,631	$44,325,107	($9,185,476)
B2B Total	$130,917,521	$150,600,050	$49,801,037	$65,470,279	($15,669,242)
Consumer	$8,272,376	$8,903,114	$2,880,526	$3,417,283	($536,757)
Dealer	$36,525,966	$39,834,825	$9,444,026	$12,960,200	($3,516,174)
B2C Total	$44,798,342	$48,737,939	$12,324,552	$16,377,483	($4,052,931)
Digital	$2,699,616	$7,209,375	$1,338,916	$896,165	$442,751
Total Shell	$178,415,479	$206,547,364	$63,464,505	$82,743,927	($19,279,422)

Overview

Digital up
B2B Reseller, Scrip, InComm (AAP) flat to 2024
B2B Corporate and corporate refillable down – smaller orders and less frequent / corporate budget cuts
BHN down (BHN fuel product + BP 4%)
Shell Dealer down

Growth Initiatives

Digital is now set up in InComm and BHN channels – sales team focusing on net new egift opportunities
Fetch Rewards launched
New B2B digital channel (in contracting)
New card creative launching Fall 2025
Shell Vendors

Sales - Canada

Strategic Sales Initiatives and Achievements
Sales

Shell Canada Processor/Production Transition

Introduce new product to channels, including reloadable functionality.

Targeted Industry Campaigns

Continued focus on high-potential industries, including Gaming, Social Services, Automotive, Business Services, Advertising, Event Planning, and businesses with 200+ employees.
Developing customized strategies for each sector to maximize engagement and conversion.

Geographic Targeting

Enhanced efforts in key provinces: Quebec (QC), Ontario (ON), and Alberta (AB).
Utilizing localized marketing campaigns to address the unique needs of each region.

Direct Mail Campaigns

Launching a direct mail initiative promoting Shell Custom Card Products, specifically targeting car dealerships to drive adoption and engagement with plans to expand into other industries.

Resource Reallocation for Pipeline Growth

Reallocating resources to focus on Canadian Direct and Reseller business opportunities, resulting in improved pipeline health and increased lead generation.

Enhanced Reseller and Promotional Activities

Expanded engagement and sales through partnerships with CAA Clubs across Canada.
Increased activity in the Scrip promotional calendar to generate additional sales opportunities.

Additional Strategic Initiatives - B2B Portal Development

Currently scoping the development of a dedicated B2B portal to streamline operations and improve the customer experience for corporate clients.

Shell US 2025 Sales Update - YTD May

	FY24 Total	FY25 Forecast	FY25 YTD (May)	FY24 YTD (May)	Variance
B2B Corporate	$3,497,071	$10,032,804	$2,141,320	$807,066	$1,334,254
B2B Reseller	$310,500	$384,175	$109,750	$87,500	$22,250
B2B Scrip	$1,805,825	$2,111,010	$602,200	$650,425	($48,225)
B2B AAP	$8,305,940	$8,225,884	$2,341,000	$2,877,550	($536,550)
InComm (new)	-	$1,500,000	-	-	-
B2B Total	$13,919,336	$22,253,873	$5,194,270	$4,422,541	$771,729
Consumer	$113,575	$133,586	$32,660	$49,300	($16,640)
Dealer	$17,382,921	$19,431,637	$4,460,000	$4,612,290	($152,290)
B2C Total	$17,496,496	$19,565,223	$4,492,660	$4,661,590	($168,930)
Digital	-	$250,000	-	-	-
Total Shell	$31,415,832	$42,069,096	$9,686,930	$9,084,131	$602,799

Overview

B2B Corporate, Reseller up
Scrip and Dealer slightly down
BHN down (Loblaws/Esso relationship)

Growth Initiatives

Givex transition – Digital and InComm launch pushed to 2026 (was included in 2025 forecast)
Targeting Auto and other industries
Wild fires community support
Shell Vendors

Trends | Market Research

US Regulatory Changes

New Jersey Gift Card Regulations: Recent legislative changes in New Jersey mandate the registration of gift cards and the escheatment of unused balances after two years. These changes require retailers to update point-of-sale systems and enhance compliance measures, posing operational challenges for businesses.

Fraud and tampering language now required on all cards on displayed and sold by retailers.

Consumer Protection Laws in New York and Maryland:

New York: Enacted legislation preventing gift card values from expiring within nine years. Additionally, gift cards and gift certificates cannot decline in value due to fees and must be redeemable for cash if the remaining value is less than $5. The law also requires businesses to disclose all terms and conditions associated with gift cards upfront, providing consumers with greater transparency and confidence in their purchases. (New York State Consumer Protection)
Maryland: Passed a law requiring secure packaging to prevent gift card draining scams, addressing fraud concerns and potentially setting a nationwide standard.

Beginning October 1, 2025 Maryland merchants selling prepaid gift card redeemable only at their stores (closed loop must display fraud warnings, use tamper-proof packaging, and train employees on fraud prevention.

Enhanced Consumer Confidence and Value: These legislative measures aim to improve the security and usability of gift cards. For companies leveraging gift cards as employee incentives or rewards, these protections make the cards more secure, reliable, and valuable. Employees are more likely to use their rewards effectively, creating a positive and memorable experience.

Incentive Market Industry News & Trends

Significant Market Investment: According to the Incentive Federation, 84% of U.S. businesses collectively spend $176 billion annually on award points, gift cards, trips, merchandise, and experiential rewards to engage sales staff, employees, channel partners, and customers.
Budget Growth Outpaced by Inflation: Budgets for gift cards, merchandise, and event gifting are up 37% in 2024, with growth projected through 2025 (Industry Outlook 2024). However, inflation often offsets these increases, limiting real growth.
Eroding Value of Gift Cards: Rising costs constrain the impact of gift cards. A modest $30 per-person increase in 2024 fails to counter inflation, reducing their purchasing power and effectiveness.
Tough Trade-offs: To manage rising costs, incentive programs are shortening durations, reducing attendees, or adopting tiered structures. These adjustments often dilute program impact and value for recipients.

Digital eGift Cards

Digital eGift Card	No Digital eGift Card